BudgIT Report: Enugu becomes Nigeria’s most financially self-sufficient state

Enugu State has overtaken Lagos to become Nigeria’s most financially self-sufficient state, according to BudgIT’s 2025 State of States report. The report ranked Enugu as the most fiscally viable subnational government in the country, capable of funding its recurrent expenditure from internally generated revenue (IGR) without relying on monthly allocations from the Federation Account Allocation […]

Enugu State has overtaken Lagos to become Nigeria’s most financially self-sufficient state, according to BudgIT’s 2025 State of States report.

The report ranked Enugu as the most fiscally viable subnational government in the country, capable of funding its recurrent expenditure from internally generated revenue (IGR) without relying on monthly allocations from the Federation Account Allocation Committee (FAAC).

Enugu recorded a fiscal independence score of 0.68, meaning that 68 percent of its IGR could cover its operating expenses. Lagos came second with a score of 0.83, while Abia, Anambra, and Kwara completed the top five with scores of 1.56, 1.66, and 1.73 respectively.

At the bottom of the ranking were Yobe, Benue, Jigawa, Kogi, and Imo, identified as the least financially viable states due to their heavy dependence on federal allocations.

BudgIT explained that states ranking higher on the fiscal independence index demonstrate stronger financial autonomy and could theoretically operate independently with minimal external support.

 

The 2025 report marks a major turnaround for Enugu, which did not feature among the top five in 2024. Then, Rivers, Lagos, Ogun, Anambra, and Cross River led the rankings.

 

Observers say the latest result highlights Enugu’s rapid fiscal reforms and improved revenue management under Governor Peter Mbah.

 

When Mbah assumed office in May 2023, the state’s IGR stood at N30 billion. By the end of that year, it rose to N37 billion, and by 2024, it had surged to N180.05 billion.

 

The report also shows that fewer states now generate enough internally to fund their recurrent expenditures compared to 2024. Last year, only Rivers and Lagos achieved that feat. In 2025, only Lagos and Enugu made the list, with Lagos generating 120.87 percent of its needs and Enugu 146.68 percent, making it the most financially independent state in the country.

 

Despite these gains, BudgIT noted that 28 states still rely heavily on FAAC allocations and other external inflows to meet their financial obligations.

 

On another index measuring IGR growth, Enugu again ranked first, followed by Bayelsa, Abia, Osun, and Kano. These states recorded the strongest year-on-year improvement in revenue generation during the 2024 fiscal year.